SECURITIES AND EXCHANGE COMMISSION
 
	WASHINGTON, D.C. 20549

	FORM 10-K

	[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
	SECURITIES EXCHANGE ACT OF 1934

	FOR THE FISCAL YEAR ENDED JULY 31, 1997
	OR
	[] TRANSITION REPORT TO SECTION 13 OR 15 (d) OF THE 
	SECURITIES EXCHANGE ACT OF 1934



	Commission file number 1-4183

	CHOCK FULL O' NUTS CORPORATION

	(Exact name of registrant as specified in its charter)

	   NEW YORK                                       13-0697025 
(State or Other Jurisdiction of           (I.R.S. Employer Identification No.)
Incorporation or Organization)

370 Lexington Avenue, New York, New York                      10017  
(Address of Principal Executive Offices)                    (Zip Code)

				(212) 532-0300                       
	      (Registrant's Telephone Number, Including Area Code)

Securities Registered Pursuant to Section 12(b) of the Act:
						   Name of Each Exchange
	  Title Of Each Class                       On Which Registered 
Common Stock, par value $.25 per share             New York Stock Exchange
8% Convertible Subordinated Debentures,            American Stock Exchange
   due September 15, 2006
7% Convertible Senior Subordinated Debentures,     New York Stock Exchange
   due April 1, 2012
Securities Registered Pursuant to Section 12(g) of the Act: NONE

Indicate by check mark whether the registrant (1) has filed all reports 
required to be filed by Section 13 or 15(d) of the Securities Exchange Act 
of 1934 during the preceding 12 months (or for such shorter period that the 
registrant was required to file such reports), and (2) has been subject to 
filing requirements for the past 90 days.
Yes   x    No      

Indicate by check mark if disclosure of delinquent filers pursuant to Item 
405 of Regulation S-K is not contained herein, and will not be contained, to 
the best of registrant's knowledge, in definitive proxy or information 
statements incorporated by reference in Part III of this Form 10-K or any 
amendment to this Form 10-K [].

Aggregate market value of the Common Stock ($.25 par value) held by non
affiliates of the registrant as of October 8, 1997: $72,897,000
Number of Shares of Common Stock ($.25 par value) outstanding as of 
October 8, 1997:  10,742,000
							     

DOCUMENTS INCORPORATED BY REFERENCE
Portions of the annual proxy statement for the year ended July 31, 1997 
are incorporated by reference into Part III.

Certain statements in the Letter of the President and Chief Executive 
Officer and Chairman of the Board included in the Annual Report to Share-
holders and in the "Management's Discussion and Analysis of Financial 
Condition and Results of Operations" and elsewhere in this Form 10-K 
constitute "forward-looking statements" within the meaning of the Reform 
Act. See "Forward-Looking Statements".
PART I

Item 1.  BUSINESS
		      Item 101 (a) and (c) of Regulation S-K
The Company is the fourth largest roaster, packer, and marketer of coffee in 
the United States based on coffee pounds sold by the Company.  Its broad range
of regular and decaffeinated, ground roast, instant and specialty coffees for 
the Foodservice and Retail Grocery Industries are sold regionally throughout 
the United States and Canada under various well known trademarks, including 
Chock full o' Nuts, LaTouraine and Cain's. Best known among its products is 
Chock full o' Nuts brand premium, vacuum packed, all-method grind coffee.  
The Company is also one of the largest marketers of foodservice and private 
label coffees.  The balance of the Company's business is derived from its 
developing Quikava outlets and from real estate operations.

Incorporated in 1932, for many years, the Company's primary business was the 
operation of counter service restaurants, under the Chock full o' Nuts name. 
In 1953, the Company expanded its business by marketing the coffee made 
famous in its restaurants to consumers via supermarkets and other Retail 
Grocery outlets. Impactful advertising, featuring the "Heavenly Coffee" 
jingle, made Chock full o' Nuts brand premium coffee a market leader.  In 
1983, Management discontinued the Company's restaurant operations and 
concentrated its efforts on the sale of coffee and related food products. In 
1994, the Company commenced opening a limited number of Chock Cafes in the 
New York metropolitain area.  In October 1996, the Company adopted a plan to 
discontinue operations of these company-owned cafes.  See Note 4 of Notes to 
Consolidated Financial Statements.

In January 1997, the Company acquired substantially all of the assets and 
assumed substantially all of the liabilities of Ireland Coffee & Tea Company
a leading roaster and distributor of coffees to hotels, restaurants and 
institutions on the East Coast.  See Note 9(a) of Notes to Consolidated 
Financial Statements.

In March 1994, the Company acquired all the assets and liabilities of a 
company ("Quikava") whose menu features a full assortment of the most popular
specialty coffee beverages, plus a variety of freshly prepared foods 
and snacks specifically suited for in-car consumption. Quikava's unique 
"double drive-thru" format targets the suburban commuter and is uniquely 
suited to take advantage of the growth of Specialty Coffees "away from home", 
where annual growth rates are significant.

In December 1992, the Company acquired the stock of Cain's Coffee Co. 
("Cain's") and certain trademarks related to that business. Cain's primary 
business is the direct sale and distribution of coffee and related products 
under the Cain's label to Foodservice Customers in twelve states primarily 
West of the Mississippi. Cain's also sells coffee and tea to Retail
Customers, using a direct store distribution system.

In November 1992, the Company acquired a controlling interest in a partnership,
which owned Dana Brown Private Brands, Inc., a company which markets and sells 
private label coffee and tea products to food retailers and distributors, 
located primarily in the Midwest.

In December 1986, the Company acquired Greenwich Mills Company ("Greenwich").
Established in 1912, Greenwich is a leading manufacturer and supplier of 
coffee, tea and allied products to Foodservice and private label customers. 
The majority of their customers are located in markets East of the Mississippi.
Greenwich's best known trademark is LaTouraine.

In November 1993, the Company sold Hillside Coffee of California, Inc., whose
business consisted of roasting, packing, distributing and marketing specialty 
coffee under the Hillside name, primarily to supermarkets.

Corporate Management is currently focused on the following growth initiatives:
(1) Maximizing the Company's Foodservice franchise by significantly broadening
its customer base for Cain's, Chock full o' Nuts and LaTouraine brand coffee, 
tea and allied products; (2) Increasing Retail Grocery Market shares for such 
higher margin products as Chock full o' Nuts brand Cafe Blend, decaffeinated, 
instant and Rich French Roast coffees; (3) Selectively pursuing new business 
development opportunities that will deliver significant volume and profit 
growth; and (4) Expansion of its developing Quikava drive-thru outlets.

The following table sets forth revenues and operating results from continuing 
operations, before interest and corporate expenses, attributable to the 
Company's beverage products sales, Quikava sales and real estate operations, 
for the fiscal years ended July 31, 1997, 1996 and 1995:


						  Fiscal Years Ended July 31,
		
					     1997          1996         1995
						      (In Thousands)
Revenues
   Net Sales - Beverage Products          $360,467     $319,213      $325,259
   Net Sales - Quikava                       3,737        1,922           882
   Rentals from Real Estate                  2,091        2,156         2,061

Operating Profit/(Loss):
   Beverage Products                        23,498       16,708        19,075
   Quikava                                  (1,998)      (1,649)         (870)
   Real Estate Operations                      140          671           490
			    


COFFEE AND RELATED PRODUCTS

Description of Coffee Market
According to certain available industry surveys and Company estimates, total 
United States coffee sales by manufacturers in 1996 were approximately $6 
billion. Approximately 31% of total United States coffee sales in 1996 were 
to Foodservice customers.

Foodservice Sales and Marketing

In January 1985, the Company began using Company sales personnel and 
independent food brokers to market its coffee and allied products to 
foodservice customers.  These include chain and independent restaurants, 
hospitals, airlines, schools, governmental institutions, vending and office 
coffee service operators and other institutional distributors. In December 
1986, the Company acquired Greenwich, which is a major direct sales and 
distribution supplier in the Eastern United States of coffee, tea and allied 
products to Foodservice Customers and private label customers.  Greenwich's 
best-known label is LaTouraine, which enjoys a reputation for high quality.  
LaTouraine also distributes spices, international coffee mixes, speciality 
coffees, whole bean and pod Espresso, hot chocolate, iced and hot tea, 
powdered soft drinks, soup bases, and portion controlled jams, jellies and 
condiments.

In December 1992, the Company acquired Cain's, which is a major supplier in
the Midwest and Southwest of products similar to those sold by Greenwich and 
LaTouraine to Foodservice Customers.

In fiscal 1997, approximately 49% of sales were derived from processing and 
marketing coffee and allied products for sale to Foodservice Customers.  
Sales of coffee products to Foodservice Customers have traditionally been 
less price-sensitive and depend more on the level of customer service provided.
These sales also tend to generate higher operating margins, due to lower 
marketing and advertising expenses, than do sales of coffee products to Retail 
Customers. In addition, the absence of competitors with a dominant market 
position, makes the Company's pricing to Foodservice Customers less 
susceptible, as compared to pricing to Retail Customers, to changes in price 
in response to pricing actions of any single competitor.

Retail Sales and Marketing

The Company currently sells most of its Retail Grocery coffee products to 
supermarket chains, wholesalers and independent food outlets ("Retail 
Customers") through independent food brokers. The Company's retail products 
include coffees sold under the Chock full o' Nuts, Cain's, Ireland and Safari 
labels.  The Company believes that its best known product, Chock full o' Nuts 
premium, vacuum packed, all-method grind coffee, is superior to most 
competitors in being able to produce a more consistent, better tasting, 
finished brew from a single, "all-method grind", regardless of the coffee 
maker used.  The Company also sells an "extended yield" coffee, which produces 
more cups than equivalent quantities of standard yield coffee. Additionally, 
the Company sells decaffeinated roast and ground coffee, instant coffees, 
a premium quality Cafe blend and a Rich French Roast coffee. 

The Company and Greenwich roast, pack and market regular, decaffeinated and 
instant coffees for sale by others under a variety of private labels.

In fiscal 1997, the Company's coffee sales to Retail Customers accounted for 
approximately 44% of sales and coffee sales under the Chock full o'Nuts label 
represented approximately 4% of total Branded Retail Grocery coffee sales in 
the United States.  

Chock full o' Nuts all-method grind coffee is sold in most major metropolitan 
areas of the United States and in the provinces of Ontario and Quebec, Canada.
Sales are concentrated in the New York metropolitan area, upstate New York, 
New England, Philadelphia, Washington, D.C. and Florida.  The Company believes
that its distinctive packaging design and one grind concept are important 
factors in the marketing of its coffee products. Marketing a single grind 
coffee has enabled the Company's all-method grind coffee to be consistently 
one of the fastest moving items off supermarket shelves in its core markets.

The sales of Cain's, Ireland and Safari brand products are concentrated in the 
Midwest, East and Southwest, respectively.

Suppliers and Manufacturing

The Company's coffee is primarily a blend of readily available Central and 
South American coffees.  The Company purchases approximately 100 million pounds
of green coffee beans annually.  All such coffee is purchased from 
approximately 25 importers located in New York City, New Orleans and Miami, 
who assume the risk of delivering beans that meet the Company's quality 
requirements at a guaranteed price.  The Company generally buys its coffee 
pursuant to contracts providing for delivery in 4 to 12 weeks and supplements 
such contracts with purchases on the spot market.  All purchases are subject to
inspection and approval by the United States Food and Drug Administration.

Manufacturing activities for coffee and related products are presently 
conducted at the following facilities:

	Location                     Principal Use

   Brooklyn, New York............Coffee Roasting Plant, Warehouse
   St. Louis, Missouri...........Coffee Roasting Plant, Warehouse
   Hialeah, Florida..............Coffee Roasting Plant, Warehouse
   Rochester, New York...........Coffee Roasting Plant, Warehouse
   Oklahoma City, Oklahoma.......Coffee Roasting Plant and Processing
				   Plant for Tea and Related Food
				   Products, Warehouse
   Springfield, Missouri.........Processing Plant for Spices, Warehouse
   Pleasantville, New Jersey.....Coffee Roasting Plant, Warehouse


All of the above facilities are owned, except the Rochester, New York, 
Springfield, Missouri and Pleasantville, New Jersey facilities, which are 
leased. The Company believes that it has sufficient production capacity 
to meet its current and future needs. 

The Company also rents executive office space in New York City and 
maintains warehousing facilities in over forty-five locations throughout the 
United States.  None of these facilities are material to the Company's   
operations.


Competition

The coffee business is highly competitive.  The Company competes for Retail 
Customers with a number of nationally and regionally established brands.  Its 
largest competitors are Kraft Foods (Maxwell House, Yuban and Sanka coffees), 
Procter & Gamble (Folger's coffees) and The Nestle Company (Hills, MJB and 
Chase & Sanborn coffees), with combined annual sales accounting for 
approximately 80% of the United States coffee market.  The profitability of 
the Company's coffee sales to Retail Customers is largely dependent on 
competitive pricing conditions.  See "Management's Discussion and Analysis 
of Financial Condition and Results of Operations".

There are many competitors in the business of selling coffee to Foodservice 
Customers. However, the Company believes that no single competitor's sales 
constitute more than 20% of this market.  Sales of coffee, tea and allied 
products to Foodservice Customers have traditionally been less price-sensitive
and more dependent on the level of service provided to such customers than 
sales of such products to Retail Customers.  In addition, the absence of direct
competitors with a dominant market position has traditionally made the 
Company's pricing to Foodservice Customers less susceptible, as compared to 
pricing to Retail Customers, to changes in price in response to pricing actions
of any single competitor.


Quikava

Quikava is the operator and franchisor of double-drive thru outlets, which 
offer a variety of specialty coffees, espresso-based drinks, fresh baked goods,
sandwiches, other "finger foods" and snacks.  Quikava units are situated on 
major commuter thoroughfares in suburban markets and offer quick-service of 
quality beverages and snacks.  The Company intends to develop additional 
Quikava units, most of which will be franchised.  At the fiscal year 
end, the Company was operating nine company owned units and there were eight 
operating franchished units. 


Cafes  

In June 1994, with the opening of a flagship store in Midtown Manhattan, the 
Company began to develop the business of operating retail cafes which offered 
moderately priced specialty coffees, sandwiches, salads, bakery products, 
snacks, and other assorted food and beverage products. The cafes had an upscale
motif, which featured a rich wood and granite interior and utilized a 
quick-service format.

The Company developed a number of formats for expansion of its retail cafe 
concept, including the full cafe (2500 to 3500 square feet with seating for 
45-75), the mini-cafe (400-1000 square feet with limited seating), and Chock 
Full O'Nuts EXPRESS-Osm (a modular kiosk of 150 square feet).

In October 1996, the Company discontinued the operations of its Cafes due
to store operating losses due to high food and labor costs and insufficient
volume to cover high fixed and operating costs related to Midtown Manhattan 
operations as well as a Cafe Corporate structure organized to support a much
higher number of locations. See Note 4 of Notes to the Consolidated Financial 
Statements.


RESEARCH AND DEVELOPMENT

The Company invested a nominal amount in research and development for the 
three years ended July 31, 1997.

TRADEMARKS

Certain trademarks (i.e. Chock full o'Nuts, LaTouraine, Eppen Smith, Cain's, 
Safari and Ireland) are important to the business of the Company.

 
EMPLOYEES

The Company employs approximately 1,400 employees, 10% of whom are represented 
by labor unions. The Company believes that its relations with both union and 
non-union employees are good.


REAL ESTATE OPERATIONS

The Company is both lessor and lessee on certain properties and an owner of one
property in New York City.  Such properties had been part of the Company's 
original restaurant operations. Additionally, the Company owns a coffee 
roasting facility in Castroville, California which it leases to the owner of 
Hillside Coffee of California, Inc. 


OTHER MATTERS

Reference is made to Notes 9(a) and 4 of Notes to Consolidated Financial
Statements with respect to the acquisition and disposition of certain assets.

			  Item 101 (b) of Regulation S-K

Segment Information is incorporated herein by reference to Note 10 of Notes
to Consolidated Financial Statements.
			  Item 101 (d) of Regulation S-K

All of the Company's operations are located in the United States.  Export sales
are not significant.

Item 2.  PROPERTIES

The Company leases certain premises which are under long-term leases expiring 
on various dates through 2009 and certain of which contain renewal options.  
Reference should be made to Note 5 of the Notes to Consolidated Financial 
Statements for additional information about these leases. The following table 
sets forth the location and certain information with respect to the Company's 
plants and certain other properties as of October 8, 1997, all of which 
premises the Company considers adequate for its present and anticipated needs.



PLANTS AND OTHER PROPERTIES
					
		
					  Approximate     Whether
					  Square Feet     Owned     
					     of           Or 
Location                Principal Use     Floor Space     Leased (1)      
Brooklyn, New York      Coffee Roasting 
			Plant,Warehouse        55,000      Owned
St. Louis, Missouri     Coffee Roasting 
			Plant,Warehouse        77,000      Owned
Secaucus, New Jersey    Warehouse and 
			Offices               104,000      Owned
Hialeah, Florida        Coffee Roasting 
			Plant,Warehouse        50,000      Owned
Rochester, New York     Coffee Roasting 
			Plant,Warehouse        50,000     Leased
Oklahoma City, Oklahoma Coffee Roasting Plant
			and Processing 
			Plant for
			Tea and Related 
			Food Products, 
			Warehouse             150,000      Owned
Springfield, Missouri   Processing Plant 
			for Spices, 
			Warehouse              30,000     Leased
Pleasantville, New      Coffee Roasting        47,000     Leased
Jersey                  Plant, Warehouse
574 Fifth Avenue        Real Estate     
New York, New York      Operation              13,000     Leased
422 Madison Avenue      Real Estate 
New York, New York      Operation               8,750     Leased
532 Madison Avenue      Real Estate
New York, New York      Operation              12,250     Leased
49 Broadway             Real Estate
New York, New York      Operation              12,000     Leased
1420 Broadway           Real Estate
New York, New York      Operation               6,750     Leased
370 Lexington Avenue    Corporate
New York, New York      Headquarters           11,000     Leased
Waverly Place corner
Green Street            Real Estate
New York, New York      Operation               2,500     Leased
336 Broadway            Real Estate
New York, New York      Operation              10,500     Owned
Castroville,            Real Estate
California              Operation              66,000     Owned
1114 Avenue of the      Real Estate             2,800    Leased
Americas                Operation
 New York, New York     
43 West 42 Street       Real Estate               340    Leased
 New York, New York     Operation
Queen Ann Plaza         Quikava Operation         250    Leased
 Norwell, Mass
2297 Brown Avenue       Quikava Operation         500    Leased
 Manchester,            
 New Hampshire                   
Natick Crossing Mall    Quikava Operation       1,500    Leased
 Natick, Mass.
917 Lynnfield Street    Quikava Operation         600    Leased
 Lynn, Mass
1184 Main Street        Quikava Operation         600    Leased
 Haverhill, Mass
84 Milfod Road          Quikava Operation         600    Leased
 Amherst, New Hampshire
374 Bridge Street       Quikava Operation         600    Leased
 N. Weymouth, Mass
895 Bald Hill Road      Quikava Operation         600    Leased
 Warwick, Rhode Island
190 Old Derby Street    Headquarters, Quikava   1,196    Leased
 Hingham, Mass.
2344 G.A.R Hwy          Quikava Operations        600    Leased
 Swansea, Mass.         

(1) -- No Company-leased premises are owned by any officer or director of 
the Company. See Note 5 of Notes to Consolidated Financial Statements.



Item 3.  LEGAL PROCEEDINGS
None

Item 4.  SUBMISSION OF MATTERS TO A VOTE OF
	 SECURITY HOLDERS                  
Not applicable.
	PART II

Item 5.  MARKET FOR THE REGISTRANT'S COMMON STOCK AND
	 RELATED SECURITY HOLDER MATTERS             

"Common Share Prices" and related security holder matters may be found 
immediately after "Segment Information" and are incorporated herein by 
reference.

Item 6.  SELECTED FINANCIAL DATA

"Selected Financial Data" may be found immediately after Note 10 of Notes
to Consolidated Financial Statements and is incorporated herein by reference.

Item 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
	 AND RESULTS OF OPERATIONS                                  

"Management's Discussion and Analysis of Financial Condition and Results of 
Operations" may be found immediately after "Forward-Looking Statements" and 
is incorporated herein by reference.

Item 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The response to this Item is submitted in a separate section of this report.

Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND 
	FINANCIAL DISCLOSURE

Not applicable.



	PART III


Item 10.  DIRECTORS AND OFFICERS OF THE REGISTRANT
				       and

Item 11.  EXECUTIVE COMPENSATION
				       and

Item 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
				       and

Item 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

Omitted, per General Instruction G.  The information required by Part III shall
be incorporated by reference from the Registrant's definitive proxy statement 
pursuant to Regulation 14A for the fiscal year ended July 31, 1997 which is 
to be filed with the Commission.


	
PART IV

Item 14.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K

(a)(1) and (2) The response to this portion of Item 14 is submitted as a 
separate section of this report.

   (3) The response to this portion of Item 14 is submitted as a separate 
   section of this report (see below).

(b)  Reports on Form 8-K:
		None

(c)  The response to this portion of Item 14 is submitted as a separate 
section of this report (see below).

(d)  The response to this portion of Item 14 is submitted as a separate 
section of this report.

Pursuant to Regulation S-K Item 601, following is a list of Exhibits.

Exhibit 3       Articles of incorporation and by laws.

       (a)      Articles of incorporation filed as an Exhibit to Form 10-K 
       for the fiscal year  ended July 31, 1994 is incorporated herein by 
       reference.

       (b)      By-laws filed as an Exhibit to Form 10-K for the fiscal 
       year ended July 31, 1994 is incorporated herein by reference.

Exhibit 4       Instruments defining the rights of security holders, including
	indentures.

       (a)      Indenture dated as of September 15, 1986 between the Company 
       and Manufacturers Hanover Trust Company ("Manufacturers")   filed as an 
       Exhibit to  Form 10-K for the fiscal year ended July 31, 1994 is 
       incorporated herein by  reference.

       (b)      Form of the Company's 8% Convertible Subordinated Debenture 
       included in Exhibit 4(a)filed as an Exhibit to Form 10-K for the fiscal
       year ended July 31, 1994 is incorporated herein by reference.

       (c)      Instrument of resignation, appointment and acceptance dated 
       August 9, 1993 among the Company, Manufacturers and Liberty Bank and 
       Trust Company of Oklahoma City filed as an Exhibit to Form 10-K for 
       the fiscal year ended July 31, 1994 is incorporated herein by 
       reference.

       (d)   Indenture dated as of April 1, 1987 between the Company and
       IBJ Schroder Bank and Trust Company filed as an Exhibit to Form 
       10-K for the fiscal year ended July 31, 1994 is incorporated 
       herein by reference.

       (e)   Form of the Company's 7% Convertible Senior Subordinated Debenture
       included in Exhibit 4(d) filed as an Exhibit to Form 10-K for the    
       fiscal year ended July 31, 1994 is incorporated herein by 
       reference.

Exhibit 9    Voting Trust Agreement, not applicable.



Exhibit 10   Material contracts

(a)     Rights Agreement, dated as of December 30, 1987, with IBJ Schroder 
	Bank and Trust Company, as Rights Agent, the form of Rights 
	Certificate and Summary of Rights to Purchase Common Stock filed as 
	an Exhibit to Form 10-K for the fiscal year ended July 31, 1994 is 
	incorporated herein by reference.

(b)     Benefits protection trust with National Westminster Bank USA filed as 
	an Exhibit to Form 10-K for the fiscal year ended July 31, 1994 is 
	incorporated herein by reference.

(c)     Resolution of the Board of Directors adopting severance policy filed as
	an Exhibit to Form 10-K for the fiscal year ended July 31, 1994 is 
	incorporated herein by reference.

(d)     Chock full o' Nuts Corporation Employees' Stock Ownership Plan dated 
	December 16, 1988 filed as an Exhibit to From 10-K for the fiscal year 
	ended July 31, 1995, is incorporated herein by reference.

(e)     Amended and Restated Credit Agreement dated December 4, 1992, amended 
	and restated as of January 1, 1996, among Chock full o' Nuts 
	Corporation and its Subsidiaries and National Westminster Bank N.A., 
	now known as Fleet Bank, N.A., and Chemical Bank, now known as the 
	Chase Manhattan Bank, filed as an Exhibit to Form 10-K for the fiscal 
	year ended July 31, 1996, is incorporated herein by references.

(f)     Form of restricted stock agreement dated January 2, 1988 with key 
	employees (including certain officers and directors) filed as an 
	Exhibit to Form 10-K for the fiscal year ended July 31, 1994 is 
	incorportated herein by reference.

(g)     Asset Purchase Agreement dated as of January 16, 1997 by and between 
	Chock full o'Nuts Corporation and Ireland Coffee-Tea, Inc. filed as 
	on Exhibit to Form 8-K dated February 3, 1997 is incorporated herein 
	by reference.

Exhibit 11  Statement re:  Computation of Per Share Earnings

Exhibit 12  Statement re:  Computation of ratios, not applicable.

Exhibit 13  Not applicable.

Exhibit 18  Letter re: change in accounting principles, not applicable.

Exhibit 21  Subsidiaries of the registrant.

Exhibit 22  Published report regarding matter submitted to vote of security
	    holders, not applicable.

Exhibit 23  Consent of experts and counsel, not applicable.

Exhibit 24  Power of attorney, not applicable.

Exhibit 27  Financial Data Schedule.

Exhibit 99  Additional exhibits, not applicable.



	
	SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange 
Act of 1934, the Registrant has duly caused this report to be signed on its 
behalf by the undersigned, thereunto duly authorized.

					   CHOCK FULL O' NUTS CORPORATION
						     (Registrant)

October 8, 1997                   /s/ Howard M. Leitner
				   Howard M. Leitner, Vice President,
				   Chief Financial and Accounting Officer
				   and Director    

Pursuant to the requirements of the Securities Exchange Act of 1934, this 
report has been signed below by the following persons on behalf of the 
registrant and in the capacities and on the dates indicated.


 October 8, 1997 /s/ Norman E. Alexander  October 8, 1997 /s/ Mark A. Alexander
		     Norman E. Alexander                      Mark A. Alexander
		     Chairman of the Board                    Director


 October 8, 1997 /s/ Stuart Z. Krinsly    October 8, 1997 /s/ Martin J. Cullen
		     Stuart Z. Krinsly                        Martin J. Cullen
		     Director                                 Vice President 
							      and Director

 October 8, 1997 /s/ Howard M. Leitner    October 8, 1997 /s/ Marvin I. Haas
		     Howard M. Leitner                        Marvin I. Haas
		     Vice President and                       President and 
		     Chief Financial Officer                  Chief Executive 
		     and Director                             Officer
							      and Director

 October 8, 1997 /s/ R. Scott Schafler    October 8, 1997 /s/ Henry Salzhauer  
		     R. Scott Schafler                        Henry Salzhauer
		     Director                                 Director 
	
 October 8, 1997 /s/ Jerry Columbus       October 8, 1997     
		     Jerry Columbus                           David S. Weil
		     Director                                 Director


		     
		     

	ANNUAL REPORT ON FORM 10-K
	ITEM 8, ITEM 14(a)(1) AND (2), (c) and (d)

	LIST OF FINANCIAL STATEMENTS 
	AND FINANCIAL STATEMENT SCHEDULES

	CERTAIN EXHIBITS

	YEAR ENDED JULY 31, 1997

	CHOCK FULL O' NUTS CORPORATION

	NEW YORK, NEW YORK
	




FORM 10-K--ITEM 14(a)(1) and (2)

CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES

LIST OF FINANCIAL STATEMENTS AND SCHEDULES


The following consolidated financial statements of the Registrant and its 
subsidiaries are included in Item 8:

									Page
Report of Independent Auditors...................................... 15
Consolidated Balance Sheets--July 31, 1997 and 1996................. 16 and 17
Consolidated Statements of Operations--Years Ended
  July 31, 1997, 1996 and 1995...................................... 18
Consolidated Statements of Cash Flows--
  Years Ended July 31, 1997, 1996 and 1995.......................... 19 and 20
Consolidated Statements of Stockholders' Equity--
  Years Ended July 31, 1997, 1996 and 1995.......................... 21 and 22
Notes to Consolidated Financial Statements.......................... 23 to 31

The following consolidated financial statement schedule of the registrant and 
its subsidiaries is included in Item 14(d):

									Page
Schedule II -- Valuation and Qualifying Accounts.................... 37


All other schedules for which provision is made in the applicable accounting 
regulation of the Securities and Exchange Commission are not required under 
the related instructions or are inapplicable and therefore have been omitted.




Ernst & Young LLP

Report of Independent Auditors





The Board of Directors and Stockholders
Chock Full o'Nuts Corporation
New York, New York


We have audited the accompanying consolidated balance sheets of Chock Full 
o'Nuts Corporation and subsidiaries as of July 31, 1997 and 1996, and the 
related consolidated statements of operations, stockholders' equity, and cash 
flows for each of the three years in the period ended July 31, 1997.  Our 
audits also included the financial statement schedule listed in the index at 
Item 14(a).  These financial statements and schedule are the responsibility 
of the Company's management.  Our responsibility is to express an opinion on 
these financial statements and schedule based on our audits.

We conducted our audits in accordance with generally accepted auditing 
standards. Those standards require that we plan and perform the audit to 
obtain reasonable assurance about whether the financial statements are free 
of material misstatement. An audit includes examining, on a test basis, 
evidence supporting the amounts and disclosures in the financial statements. 
An audit also includes assessing the accounting principles used and signifi-
cant estimates made by management, as well as evaluating the overall 
financial statement presentation.  We believe that our audits provide a 
reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above 
present fairly, in all material respects, the consolidated financial position 
of Chock Full o'Nuts Corporation and subsidiaries at July 31, 1997 and 1996, 
and the consolidated results of their operations and their cash flows for each 
of the three years in the period ended July 31, 1997 in conformity with 
generally accepted accounting principles.  Also, in our opinion, the related 
financial statement schedule, when considered in relation to the basic 
financial statements taken as a whole, presents fairly in all material respects
the information set forth therein.

						ERNST & YOUNG LLP


New York, New York
September 30, 1997









CONSOLIDATED BALANCE SHEETS
CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES
July 31, 1997 and 1996

ASSETS                                                1997              1996

CURRENT ASSETS:
Cash and cash equivalents                        $  4,585,633       $16,293,783
Receivables, principally trade, less
  allowances for doubtful accounts and
  discounts of $1,422,000 and $1,133,000--                        
     Notes 2 and 9(b)                              37,554,412        30,989,008
Inventories--Notes 1 and 2                         82,951,688        59,637,802
Prepaid expenses and other -- Note 3                2,457,221         3,667,875
		 TOTAL CURRENT ASSETS             127,548,954       110,588,468

PROPERTY, PLANT AND EQUIPMENT, at cost-
     Note 2:
Land                                                3,114,889         3,114,889
Buildings and improvements                         14,805,429        14,675,708
Leaseholds and leasehold improvements               2,526,691         1,825,464
Machinery and equipment                            78,162,457        74,067,267
						   98,609,466        93,683,328
Less allowances for depreciation and
  amortization                                     49,933,489        45,172,084
						   48,675,977        48,511,244
REAL ESTATE HELD FOR DEVELOPMENT OR SALE
  at cost -- Note 2                                 7,635,427         7,691,267

OTHER ASSETS AND DEFERRED CHARGES, net--
   Note 9 (c)                                      23,799,057        26,976,132


EXCESS OF COST OVER NET ASSETS  
  ACQUIRED, net                                     9,670,551         5,668,008
						 $217,329,966      $199,435,119
See notes to consolidated financial statements




CONSOLIDATED BALANCE SHEETS - Continued
CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES
July 31, 1997 and 1996

						     1997              1996
						      
LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
  Accounts payable                               $ 13,590,697     $ 10,469,300
  Accrued expenses                                 12,148,313       11,346,483
  Income taxes--Note 3                              1,957,788        1,719,575
  Current installments of long-term debt --           
    Note 2                                            766,000
	       TOTAL CURRENT LIABILITIES           28,462,798       23,535,358

LONG-TERM DEBT, Excluding Current Installments-- 
    Note 2                                        106,065,753      105,235,468

OTHER NON-CURRENT LIABILITIES                       3,265,078        1,586,231

DEFERRED INCOME TAXES -- Note 3                     7,655,000        5,591,000

STOCKHOLDERS' EQUITY--Notes 2 and 6:
    Common stock, par value $.25 per share;
    Authorized 50,000,000 shares;
	Issued 11,211,068 shares                    2,802,767        2,802,767
    Additional paid-in capital                     51,357,008       51,357,008
    Retained earnings                              25,349,146       17,434,755
						   79,508,921       71,594,530
    Deduct:
     Cost of 475,522 shares in treasury            (6,573,719)      (6,573,719)
     Deferred compensation under stock  
	bonus plan and employees' stock                         
	ownership plan                             (1,053,865)      (1,533,749)
	       TOTAL STOCKHOLDERS' EQUITY          71,881,337       63,487,062

LEASES--Note 5                 
						 $217,329,966     $199,435,119

See notes to consolidated financial statements



CONSOLIDATED STATEMENTS OF OPERATIONS
CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES
Years ended July 31, 1997, 1996 and 1995

				      1997            1996            1995
Revenues:
  Net sales                      $364,203,601    $321,134,537    $326,140,872
  Rentals from real estate          2,091,307       2,156,070       2,061,015
				  366,294,908     323,290,607     328,201,887
Costs and expenses: 
  Cost of sales                   257,078,504     229,477,193     230,962,257
  Selling, general and  
   administrative expenses         86,018,181      77,223,407      77,396,552
  Expenses of real estate           1,951,137       1,484,681       1,571,090
				  345,047,822     308,185,281     309,929,899
OPERATING PROFIT                   21,247,086      15,105,326      18,271,988

Interest and dividend income        1,061,160         865,145         903,887
Interest expense                   (8,599,963)     (8,783,798)     (9,191,495)
Other(deductions)/income -- 
 Notes 9 (d) and (e)               (1,495,891)        520,692         763,597
INCOME BEFORE INCOME TAXES         12,212,392       7,707,365      10,747,977

Income taxes--Note 3:
  Current:              
    Federal                         1,885,000       1,905,000       3,276,000
    State and local                   753,000         488,000         161,000
  Deferred                          1,660,000         683,000         573,000
				    4,298,000       3,076,000       4,010,000
INCOME FROM CONTINUING OPERATIONS   7,914,392       4,631,365       6,737,977

Discontinued operations -- Note 4:
(Loss) from operations, net of 
  income tax credits of $1,073,000 
  and $1,009,000                                   (1,757,044)     (1,874,689)
(Loss) on disposition, net of 
deferred income tax credit of 
  $2,590,000                                       (4,410,000)
						   (6,167,044)     (1,874,689)
NET INCOME/(LOSS)                 $ 7,914,392     $(1,535,679)     $4,863,288
Income/(loss)per share--Note 1:
  Primary:
    Continuing operations               $ .74          $  .43            $.63
    Discontinued operations                              (.57)           (.18)
    Net income/(loss)                   $ .74          $ (.14)           $.45
  Fully diluted:
    Continuing operations               $ .55          $  .40            $.51
    Discontinued operations                              (.27)           (.09)
    Net income                          $ .55            $.13            $.42
		

See notes to consolidated financial statements


			   
CONSOLIDATED STATEMENTS OF CASH FLOWS
CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES
Years Ended July 31, 1997, 1996 and 1995

 
					     1997         1996         1995
Operating Activities - Continuing 
Operations:  
Income from continuing operations    
  before income taxes                    $12,212,392  $ 7,707,365  $10,747,977
Adjustments to reconcile pretax income 
  from continuing operations to net cash 
  provided by continuing operations:  
Depreciation and amortization of property, 
  plant and equipment                      7,386,215    6,380,262    5,799,063
Amortization of deferred compensation and     
  deferred charges                         4,437,262    4,561,305    4,606,372
Other, net                                  (312,060)  (1,000,099)    (330,359)
Changes in operating assets and 
  liabilities:        
   (Increase)/decrease in receivables     (4,889,186)   6,818,278   (6,076,849)
   (Increase)/decrease in inventories    (21,960,180)     913,733  (15,008,487)
   Decrease/(increase) in prepaid 
   expenses                                1,600,484     (281,086)  (1,511,194)
   Increase/(decrease) in accounts 
   payable, accrued expenses and 
   income taxes                            1,259,724   (5,098,044)    (801,909)
     Net cash (used in)/provided by 
     operating activities - continuing 
     operations                             (265,349)  20,001,714   (2,575,386)
Operating Activities - Discontinued 
Operations:  
  Discontinued operations exclusive of 
    income taxes                                       (9,830,044)  (2,883,689)
  Adjustments to reconcile pretax loss  
    from discontinued operations to 
    net cash used in discontinued 
    operations  
  Provision for close down and write-off        
     of equipment                                       7,000,000  
  Depreciation and amortization                           431,623      247,841
  Other                                                  (192,929)    (146,047)
      Net cash (used in) discontinued 
      operations                                       (2,591,350)  (2,781,895)
Income taxes - current                    (2,638,000)  (1,320,000)  (2,428,000)
  NET CASH (USED IN)/PROVIDED BY 
  OPERATING ACTIVITIES                    (2,903,349)  16,090,364   (7,785,281)



Investing Activities - Continuing Operations:
  Purchases of marketable securities         (34,026)(152,018,726) (11,473,787)
  Proceeds from sale and collection of
    principal of marketable securities        79,993  158,863,555   31,086,939
  Purchases of property, plant and 
    equipment                             (6,123,523)  (7,411,199)  (6,547,330)
  Acquisition of business                 (5,872,858)
  Proceeds from/(advances to) co-packer    1,549,328   (3,132,245)  
  Proceeds from sale of property, 
    plant and equipment                                              4,078,764
  Other                                                   (13,147)    
    Net Cash (used in)/provided by      
    investing activities - continuing 
    operations                           (10,401,086)  (3,711,762)  17,144,586
    Net cash (used in)investing activities -                             
       discontinued operations - 
       purchases of property and 
       equipment                                       (2,608,543)  (2,457,240)
     NET CASH (USED IN)/PROVIDED BY 
     INVESTING ACTIVITIES                (10,401,086)  (6,320,305)  14,687,346
Financing activities - Continuing 
 Operations:          
 Loan to employees' stock ownership 
  plan                                                   (500,000)    (500,000)
Net proceeds from (payments of)long-term 
  debt                                     1,596,285   (1,333,428)  (3,856,369)
NET CASH PROVIDED BY/(USED IN)  
       FINANCING ACTIVITIES                1,596,285   (1,833,428)  (4,356,369)
(DECREASE)/INCREASE IN CASH AND CASH 
EQUIVALENTS - CONTINUING OPERATIONS      (11,708,150)   7,936,631    2,545,696
  Cash and cash equivalents at 
  beginning of year - continuing 
  operations                              16,293,783    8,357,152    5,811,456
CASH AND CASH EQUIVALENTS AT END 
OF YEAR-CONTINUING OPERATIONS             $4,585,633  $16,293,783   $8,357,152

Supplemental Information
   Cash paid during the year:                 1997         1996          1995
      Interest                            $8,143,201   $8,259,325    $8,532,841
      Income taxes                         2,168,425      848,539     1,080,706


See notes to consolidated financial statements




CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES
Years Ended July 31, 1997, 1996 and 1995



					  
						      Common Stock 
						Issued           In Treasury
					  Shares     Amount    Shares    Amount
							In Thousands 

Balance at July 31, 1994                  10,898     $2,724       476    $6,574
Net Income
3% stock dividend                            313         79
Conversion of debentures                
Deferred compensation under stock
  bonus plan and employees' stock
  ownership plan:                       
    Amortization
    Loan to employees' stock ownership
    plan                                
Decrease in unfunded pension losses              
Balance at July 31, 1995                  11,211      2,803       476     6,574
Net(loss)
Deferred compensation under stock
  bonus plan and employees' stock
  ownership plan:
    Amortization
    Loan to employees' stock 
    ownership plan                  
Balance at July 31, 1996                  11,211      2,803       476     6,574
Net income                                                      
Deferred compensation under stock
  bonus plan and employees' stock
  ownership plan:
    Amortization
Balance at July 31, 1997                  11,211     $2,803       476    $6,574

See notes to consolidated financial statements




CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - Continued
CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES
Years Ended July 31, 1997, 1996, and 1995
				    Deferred
				  Compensation
				    Under Stock
				    Bonus Plan
				  and Employees'  Unfunded  Additional
				  Stock Ownership Pension   Paid-In   Retained
				      Plan        Losses    Capital   Earnings
						     In Thousands       

Balance at July 31, 1994             $1,664       $1,766     $49,323   $16,218
Net income                                                               4,863
3% stock dividend                                              2,032    (2,111)
Conversion of debentures                                           2
Deferred compensation under stock
  bonus plan and employees' stock
  ownership plan:
    Amortization                       (544)
    Loan to employees' stock 
    ownershipn plan                     500                 
Decrease in unfunded pension losses               (1,766) 
Balance at July 31, 1995              1,620          -        51,357    18,970
Net (loss)                                                              (1,535)
Deferred compensation under stock
  bonus plan and employees' stock
  ownership plan:
    Amortization                       (586)
    Loan to employees' stock               
    ownership plan                      500                               
Balance at July 31, 1996              1,534          -        51,357    17,435
Net income                                                               7,914
Deferred compensation under stock
  bonus plan and employees' stock
  ownership plan:
    Amortization                       (480)
Balance at July 31, 1997             $1,054          -       $51,357   $25,349

See notes to consolidated financial statements                  




NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES
July 31, 1997, 1996 and 1995

NOTE 1--SIGNIFICANT ACCOUNTING POLICIES

Fiscal year:   The Company's year ends on the last Friday in July.  Fiscal 
years are designated as ending July 31 for convenience of reference.

Principles of Consolidation:  The consolidated financial statements include 
the accounts of the Company and its subsidiaries. Significant intercompany 
accounts and transactions have been eliminated in consolidation.

Use of Estimates:  The preparation of the financial statements  in conformity 
with generally accepted accounting principles requires management to make 
estimates and assumptions that affect the amounts reported in the financial 
statements and accompanying notes.  Actual results could differ from those 
estimates.

Receivables - Concentration of Credit Risk:  The Company's primary business 
is the roasting, packing and marketing of a broad range of regular and 
decaffeinated, ground roast, instant and specialty coffees for the 
Foodservice and Retail Grocery Industries.  These products are sold 
regionally throughout the United States and Canada.  The Company performs 
periodic credit evaluations of its customers' financial condition and 
generally does not require collateral. Credit losses relating to customers 
have consistently been within Management's expectations.

Cash Equivalents:   The Company considers all highly liquid investments with 
a maturity of three months or less when purchased to be cash equivalents.

Inventories:  Inventories are stated at the lower of cost (first-in, first-out)
or market and consist of:

    July 31,                         1997           1996   

    Finished goods              $41,747,129     $35,715,505             
    Raw materials                36,412,728      18,931,470               
    Supplies                      4,791,831       4,990,827               
				$82,951,688     $59,637,802      

Property, Plant and Equipment:  Depreciation and amortization of property, 
plant and equipment are computed by the straight-line method for financial 
reporting purposes and by accelerated methods for income tax purposes.

Long-Lived Assets:  In accordance with Financial Accounting Standards Board 
("FASB") Statement No. 121, "Accounting for the Impairment of Long-Lived Assets
and for Long-Lived Assets to be Disposed of", the Company records impairment 
losses on long-lived assets used in operations,including intangible assets, 
when events and circumstances indicate that the assets might be impaired and 
the undiscounted cash flows estimated to be generated by those assets are 
less than the carrying amounts of those assets.

Pre-opening Costs:  Quikava pre-opening costs are charged to operations as 
incurred.

Excess of Cost over Net Assets Acquired:  The Company evaluates goodwill 
impairment at the end of each quarter based on recoverability measured by 
undiscounted estimated operating profits (i.e., pretax earnings before 
interest expense and goodwill amortization).  Under this approach, the carrying
value would be reduced to estimated realizable value if it is probable that 
Management's best estimate of future operating profits during the goodwill 
amortization period will be less than the carrying amount of the related 
goodwill.  Excess of cost over net assets acquired is being amortized on a 
straight-line basis over periods of 40 and 15 years.  Accumulated amortization 
amounted to $2,010,000 and $1,755,000 at July 31, 1997 and 1996, respectively.

Other Intangibles:  Other intangibles consist principally of trademarks, 
covenants not to compete and customer lists.  Such items are being amortized 
on a straight-line basis over periods of 40, 5 and 7.5 years, respectively. 
See Note 9 (c).  The Company evaluates any impairment of these assets on a
basis similar to goodwill.

Advertising Expenses:  The cost of advertising is expensed as incurred.  The 
Company incurred $4,253,000, $3,130,000 and $4,615,000 in advertising costs 
during 1997, 1996 and 1995, respectively.

Stock Based Compensation: In October 1995, the FASB issued Statement of 
Financial Accounting Standards No. 123, Accounting for Stock-Based 
Compensation, which provides an alternative to APB Opinion No. 25, Accounting 
for Stock Issued to Employees, in accounting for stock-based compensation 
issued to employees.  The Statement allows for a fair value based method of 
accounting for employee stock options and similar equity instruments.  The 
Company has determined it will continue to report stock-based compensation 
for all options that are issued under APB Opinion No. 25.

Per Share Data:  Primary per share data is based on the following weighted 
average number of common shares outstanding during each year retroactively 
adjusted for stock dividends:10,736,000 in 1997, 1996 and 1995. Fully diluted 
per share data, assuming conversion of debentures, is based on 22,557,000 
common shares outstanding for the years ended July 31, 1997, 1996 and 1995.

In February of 1997, the FASB issued Statement No. 128, "Earnings Per Share", 
which is required to be adopted on December 31, 1997.  At that time, the 
Company will be required to change the method currently used to compute 
earnings per share and to restate all prior periods. The Company believes 
adoption of Statement No. 128 will not have a material impact on earnings per 
share information currently presented.

NOTE 2--LONG TERM DEBT

Long-term debt consists of the following:
							     July 31
							1997          1996

     7% Convertible senior subordinated
       debentures due 2012                        $ 51,693,000    $ 51,693,000
     8% Convertible subordinated debentures
       due 2006                                     43,266,000      43,266,000
     Revolving credit and term loan                 11,872,753      10,276,468
			     
						   106,831,753     105,235,468
     Less current installments                         766,000     
						  $106,065,753    $105,235,468

The 7% and 8% debentures require annual sinking fund payments of $3,000,000 
and $3,750,000, respectively, which after giving effect to previous 
conversions and redemptions, commence April 1, 2000 and September 15, 1998, 
respectively, and provide for balloon payments of $18,000,000 and $12,500,000 
on April 1, 2012 and September 15, 2006, respectively.  The debentures are 
convertible at the option of the debenture holders into shares of the 
Company's common stock at a price of $8.23 per share and $7.81 per share, 
respectively (subject to adjustment).  As of July 31, 1997, approximately 
11,821,000 common shares are reserved for issuance upon conversion of 
debentures.

Under the Company's amended and restated revolving credit and term loan 
agreements (collectively the "Loan Agreements") with Fleet Bank,  N.A. and  
The Chase Manhattan Bank (the "Banks"), the Company may, from time to time, 
borrow funds from the Banks, provided that the total principal amount of all 
such loans outstanding through December 31, 1997 may not exceed $40,000,000 
and after such date may not exceed $20,000,000. Interest (8.5% at July 31, 
1997) on all such loans is equal to the prime rate, subject to adjustment 
based on the level of loans outstanding. Outstanding borrowings under the 
Loan Agreements may not exceed certain percentages of and are collateralized 
by, among other things, the trade accounts receivable and inventories, and 
substantially all of the machinery and equipment and real estate of the 
Company and its subsidiaries.  All loans made under the term loan agreement 
($10,000,000 at July 31, 1997) are to be repaid in December 1999. Outstanding 
loans under the revolving credit agreements are to be repaid in December 1999.
Pursuant to the terms of the Loan Agreements, the Company and its subsidiaries,
among other things, must maintain a minimum net worth and meet ratio tests for 
liabilities to net worth and coverage of fixed charges and interest, all as 
defined. The Loan Agreements also provide, among other things, for 
restrictions on dividends (except for stock dividends) and require repayment 
of outstanding loans with excess cash flow, as defined.

As of July 31, 1997, long-term debt matures as follows: $766,000 (year ending 
July 31, 1998), $3,750,000 (year ending July 31, 1999), $16,315,753 (year 
ending July 31, 2000),$6,750,000 (years ending July 31, 2001 and 2002) and 
$72,500,000 thereafter.

The Company believes that the fair value of its 7% and 8% convertible 
subordinated debentures approximates $51,176,000 and $44,780,000, respectively,
as indicated by the public trading prices of such debt.

NOTE 3--INCOME TAXES
The provision for income taxes for continuing operations differs from the 
expected Federal income tax for the reasons shown in the following table:

					      1997          1996          1995 
  Federal income tax provision
    expected at the statutory rate       $4,152,213    $2,620,504   $ 3,761,792
  Effect on Federal income tax of:
    State and local income taxes,                        
	net of Federal income tax 
	benefit                             496,980       322,080       106,260
    Amortization of excess of cost 
	over net assets acquired             68,000        68,000        68,000
    Other                                   347,807        65,416        73,948
    Realization of prior year capital 
	loss not previously recorded       (767,000)
					 $4,298,000    $3,076,000    $4,010,000


Deferred tax liabilities and assets are comprised of the following at July 31,
							    1997         1996
   Net deferred non-current tax liabilities:                
     Net difference between tax and book basis       
	of property, plant and equipment               $7,755,000   $5,897,000
     Prepaid pension expense                              779,000      431,000
     Compensation under stock bonus plan and
       employees' stock ownership plan                   (178,000)    (273,000)
     Other                                               (701,000)    (464,000)
						       $7,655,000   $5,591,000
   Net deferred current tax assets:
     Net difference between tax and book
	basis of inventory                               $356,000     $344,000
     Allowance for doubtful accounts and discounts        463,000      419,000
     Accrued expenses - close-down                        169,000      650,000
     Accrued cash bonus                                   208,000
     Payment of underfunded pension plan                              (525,000)
     Other                                                 72,000       45,000
						       $1,268,000    $ 933,000
   
NOTE 4--DISCONTINUED OPERATIONS

In October 1996, the Company's Board of Directors adopted a plan to discontinue
operations of the Chock Cafes. Accordingly, the operating results of the Chock 
Cafe operations,including provisions for estimated lease termination costs, 
employee benefits and losses during the phase-out period of approximately 
$1,800,000 and a write-off of leasehold improvements and equipment and deferred
charges of approximately $5,200,000 have been segregated from continuing 
operations and reported as a separate line item on the statement of operations.
During the year end July 31, 1997, approximately $1,250,000 was changed against
the previously established reserves.
 
Operating results (exclusive of any corporate charges or interest expense and 
the aforementioned provisions)from discontinued operations are as follows:

					1996            1995
 
 Net Sales                           $3,783,397      $2,236,855
 Costs and expenses  
  Costs of sales                      5,903,142       4,184,197  
  Selling, general and    
    administrative expenses             710,299         705,197      
				      6,613,441       4,889,394
 Operating (loss)                    (2,830,044)     (2,652,539)
 Other deductions                                      (231,150)
 (Loss) before income taxes          (2,830,044)     (2,883,689)
 Income tax credits                  (1,073,000)     (1,009,000)
 (Loss) from operations             $(1,757,044)    $(1,874,689) 


NOTE 5 -- LEASES 

The Company and subsidiaries lease manufacturing plants, warehouses, office 
space and  Quikava locations and related premises. Leases which provide for 
payment of property taxes, utilities and certain other expenses, expire on 
various dates through 2009 and contain renewal options. As of July 31, 1997, 
the Company's obligation for future minimum rental payments, assuming the 
exercise of renewal options, aggregated $12,440,000. Payments required in the 
following five fiscal years amount to $4,024,000 (1998), $3,249,000 (1999), 
$2,523,000 (2000),$1,476,000(2001) and $760,000 (2002). Rental expense charged
to continuing operations under operating leases for the years ended July 31, 
1997, 1996 and 1995 was $4,751,000, $4,150,000 and $4,893,000, respectively.

As of July 31, 1997, future minimum rental payments due from tenants under 
sub-leases of retail facilities and related premises aggregated $12,922,000.
Amounts receivable in the following five fiscal years amount to $2,087,000 
(1998), $1,809,000 (1999), $1,508,000 (2000), $1,244,000 (2001) and $926,000
(2002).

NOTE 6--STOCKHOLDERS' EQUITY

A non-contributory employee stock ownership plan ("ESOP") has been established 
to acquire shares of the Company's common stock for the benefit of all eligible
employees. The Company has made loans to the ESOP to be repaid in equal annual 
installments over 8 years with interest primarily at 9% and 10%. Deferred 
compensation equal to the loans has been recorded as a reduction of stock
holders' equity representing the Company's prepayment of future compensation 
expense.  As the Company makes annual contributions to the ESOP, these 
contributions will be used to repay the loans to the Company, together with 
accrued interest. As the loans are repaid, common stock is allocated to ESOP 
participants and deferred compensation is reduced by the amount of the 
principal payment on the loans.

The Company has a Warrant Dividend Plan which provides for distribution to 
shareholders of a right to purchase one share of the Company's common stock 
currently for $24.13 (subject to anti-dilution adjustments) as a dividend on 
each of the Company's outstanding common shares. These rights are not currently
exercisable and will only become exercisable upon the happening of certain 
events. Under certain circumstances, the rights entitle the holders to receive,
upon payment of the then current exercise price of the right, that number of 
shares of Company common stock having a market value of two times the then 
current exercise price of the right.  The rights will expire on December 30, 
1997 and are redeemable at $.05 per right at any time prior to the occurrence 
of certain events.

The Company's incentive compensation plan provides, among other things, for 
incentive or non-qualified stock options, stock appreciation rights, perfor-
mance units, restricted stock and incentive bonus awards.  During the years 
ended July 31, 1996 and 1995, respectively, non-qualified stock options 
for the purchase of 16,000 and 250,000 shares, at prices of $5.25
and $5.75 per share, were granted to key executives under the plan. 
During each of the years ended July 31, 1997 and 1995 
options to purchase 8,500 shares were forefeited.  At July 31, 1997, 
there were outstanding options for 358,000 shares. The 1995 options were 
granted to the Chief Executive Officer. Options granted are exercisable at 
the fair market value at date of grant and, subject to termination of 
employment, expire ten years from the date of grant, are non-transferable other
than on death, and are exercisable in three equal annual installments 
commencing three years from date of grant.

Had compensation cost for the Company's stock option plan been determined 
based on the fair market value at the grant for awards in 1996 consistent
with the provisions of SFAS 123, the Company's net income would have
been reduced by approximately $1,000 in 1997 and net loss would have been  
increased by approximately $2,000 in 1996 with no affect on per share amounts.  
These pro forma amounts may not be representative of future disclosures since 
the estimated fair value of stock options is amortized to expense over the 
vesting period, and additional options may be granted in future years.  The 
fair value for the options awarded was estimated at the date of grant using 
the Black-Scholes model with the following assumptions: expected divided yield 
- 0, expected stock price volatility - 22%,risk-free interest rate: 1996 - 
5.34% and expected life of options - 4 years.

Under the incentive compensation plan, as of July 31, 1997, 31,000 common 
shares are outstanding which were issued to key executives in 1987 and 1988.  
These shares are subject to restricted stock agreements which provide that 
the shares will vest ratably over periods through 2001. Such shares are 
subject, upon the occurrence of certain events, to either forfeiture or 
accelerated vesting.  The fair value of the shares on the dates of issuance is
being charged to operations as compensation during the period the restrictions
remain in effect. At July 31, 1997, 121,000 shares were available under the 
plan.


NOTE 7--PENSION PLANS

The Company has non-contributory defined benefit pension plans covering all 
employees who have completed six months of service, have attained age twenty 
and one-half and are not covered by union-sponsored plans.  The benefits are 
based on years of service and the employee's compensation during the last 60 
months of employment.  The pension plans are funded to accumulate sufficient 
assets to provide for accrued benefits.  In addition, contributions are made 
to multi-employer plans which provide defined benefits to union employees.

A summary of the components of net periodic pension cost for the defined 
benefit plans for the three years ended July 31, 1997 and total contributions 
charged to pension expense for the union-sponsored plans follows (in 
thousands):


						1997       1996        1995

      Service cost-benefits earned
	during the year                        $1,681     $1,729      $1,813
      Interest cost on projected benefit        
	obligation                              2,246      1,985       1,961
      Actual return on plan assets             (2,021)    (1,866)     (1,723)
      Net amortization and deferral               211        144         253
      NET PENSION COST OF DEFINED BENEFIT               
	PLANS                                   2,117      1,992       2,304
      UNION-SPONSORED PLANS                       335        319         287
      TOTAL PENSION EXPENSE                    $2,452     $2,311      $2,591   


The following table sets forth the funded status and amounts recognized in the 
consolidated balance sheet at July 31, for the defined benefit pension plans 
(in thousands):
			       1997                  1996
			   Plans Whose     Plan Whose     Plan Whose
			   Assets Exceed   Assets Exceed  Accumulated
			   Accumlated      Accumulated    Benefits
			   Benefits        Benefits       Exceed Assets
Actuarial present value of
 benefit obligations:

 Vested benefit obligation  $ (27,641)      $ (22,241)      $(2,160)
 Accumulated benefit                    
  obligation                $ (27,967)      $ (22,993)      $(2,163)         
 Projected benefit
  obligation                $ (31,141)      $ (25,520)      $(2,163)

 Plan assets, consisting
  primarily of U.S. 
  treasury notes, other 
  U.S. agency issues, 
  guaranteed insurance
  contracts and corporate 
  investments, at fair 
  value                        27,404          23,010         1,864    

Projected benefit obligation            
 (in excess of)plan assets     (1,737)         (2,510)         (299)
Unrecognized prior service cost   280             223           114
Unrecognized net loss           5,586           5,338           392         
Unrecognized net asset at 
 August 1, 1987; net of 
 amortization                    (484)           (514)          (57)
									       
Net pension asset                                   
 recognized in the consolidated
 balance sheet                 $3,645          $2,537          $150        

The weighted-average discount rate and rate of increase in future compensation 
levels used in determining the actuarial present value of the projected benefit
obligation were 8.0% and 4% and 8.3% and 4%, respectively, at July 31, 1997 and
1996.  The expected long-term rate of return on plan assets was 8.0% in 
1997, 1996 and 1995, respectively.

 
NOTE 8--QUARTERLY FINANCIAL DATA (UNAUDITED)
The following is a summary of the unaudited quarterly results of continuing 
operations for the years ended July 31, 1997 and 1996:

						     Fiscal 1997    
						 Three Months Ended
				  October 31  January 31    April 30  July 31
				  (Thousands of Dollars Except Per Share Data)

Net sales                        $82,577      $84,242      $95,306  $102,079 

Gross profit                     $23,421      $25,787      $29,110  $ 28,807

       Income from
	 continuing operations   $ 1,451      $ 1,748      $ 2,236   $ 2,479(1)
Per share:
  Primary                        $   .14      $   .16      $   .21   $   .23(1)

  Fully diluted                  $   .11      $   .13      $   .15   $   .16


						     Fiscal 1996         
						  Three Months Ended
				 October 31   January 31  April 30  July 31
				  (Thousands of Dollars Except Per Share Data)


Net sales                        $77,373      $82,243     $85,617   $75,902

Gross profit                     $21,588      $22,977     $25,058   $22,034 

       Income from 
	 continuing operations   $ 1,354      $ 1,389     $ 1,460   $   428
       
Per share:
  Primary                        $   .13      $   .13     $   .14   $   .04 

  Fully diluted                  $   .11      $   .12     $   .10   $   .04 


(1) Includes write-off of $1,500,000 relating to litigation, $.09 per share and
$767,000 income tax credit relating to realization of prior year capital 
loss not previously recorded , $.07 per share (see Notes 9(a) and 3).


NOTE 9--OTHER ITEMS

a.  On January 17,1997, the Company acquired substantially all of the assets
    and assumed substantially all of the liabilities of Ireland Coffee & Tea
    Company, a leading roaster and distributor of coffees to hotels, restaur-
    ants and institutions on the East Coast for approximately $8,000,000 which
    includes $1,500,000 for contingent payments.  The acquisition is being 
    accounted for as purchase.  The excess of cost over net assets acquired 
    (approximately $4,100,000) is being amortized over a period of 40 years 
    using the straight-line method.  The pro forma effects on the Company's 
    operations as if this business had been acquired on August 1, 1995 are 
    not material.


b.  Receivables other than trade at July 31, 1997 and 1996 amount to $576,000
    and $2,418,000, respectively.  See Note 9(d).

c.  Other assets and deferred charges consist of (in thousands):

    July 31,                                               1997          1996

Deferred financing costs (1)                              $2,460        $2,896
Non-compete agreements, net                                1,424         2,766
Trademarks, net                                            5,207         4,542
Customer lists, net                                        3,512         4,666
Due from co-packer                                         1,711         3,375 
Prepaid pension expense                                    3,705         2,924
Other                                                      5,780         5,807
							 $23,799       $26,976

				

(1) Being amortized over the terms of the related indebtedness (see Note 2).

d. In connection with closing a business and termination of a pension plan the
Company paid a liability for an underfunded pension plan of approximately 
$1,500,000 and recorded a similar amount receivable at July 31, 1994 from the
previous owner of such business pursuant to certain provisions of the 
acquisition agreement.  The previous owner of the business is contesting the 
liability to the Company and the Company has commenced litigation seeking 
collection of such amount.  On August 8, 1997 the United States District Court 
Southern District of New York granted the previous owner's motion for summary 
judgment.  The Company has appealed the decision to the Second Circuit.  
However, due to the uncertainty surrounding the outcome of such appeal and in 
light of the aforementioned decision, the Company has written-off the 
$1,500,000 due from theprevious owner. Such amount is included in other 
deductions in fiscal 1997.

e. In fiscal 1996, other income includes $460,000 from the sale of real 
estate. In fiscal 1995, other income includes $589,000 from the sale of a 
former manufacturing plant.

NOTE 10 -- INDUSTRY SEGMENT INFORMATION

The Company's financial information by industry segment for 1997, 1996 and 1995
may be found immediately after "Managements Discussion and Analysis of 
Financial Condition and Results of Operations" and is incorporated herein by 
reference.


SELECTED FINANCIAL DATA 
CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES

					      YEAR ENDED JULY 31          
			    1997        1996       1995        1994      1993
			(Dollar Amounts in Thousands, Except Per Share Amounts)

Net sales                 $364,204   $321,135    $326,141   $263,511   $251,641
Income from
  continuing operations      7,914      4,631       6,738      8,243      1,062
Working capital             99,086     87,053      89,612     81,590     72,022
Working capital ratio     4.5 to 1   4.7 to 1    4.3 to 1   3.6 to 1   3.8 to 1
Total assets               217,330    199,435     207,005    208,807    195,304
Long-term debt             106,066    105,235     106,569    110,427    108,092
Stockholders' equity        71,881     63,487      64,937     58,262     52,985
Per common share (1):
 Income from
   continuing operations       .74        .43         .63        .76        .10
 Stock dividends declared                              3%         3%         3%
	 
 Stockholders' equity         6.70       5.91        6.05       5.43       4.84
				

 (1)  Per share data has been retroactively adjusted for a 3% stock dividend in
 July 1995, 1994 and 1993.


FORWARD-LOOKING STATEMENTS

Certain statements under the caption "Management's Discussion and Analysis of 
Financial Condition and Results of Operations" and elsewhere in this Form 10-K 
and in the letter of the President and Chief Executive Officer and Chairman of 
the Board and elsewhere in the Company's Annual Report to Shareholders, 
constitute "forward looking statements" within the meaning of the Reform Act. 
Such forward looking statements involve known and unknown risks, 
uncertainties, and other factors which may cause the actual results, 
performance or achievements of the Company to be materially different from any 
future results, performance or achievements expressed or implied by such 
forward looking statements. Such factors include, among others, the following: 
general economic and business conditions; the availability of green coffee; 
green coffee prices; competition; success of operating 
initiatives; development and operating costs; advertising and promotional 
efforts; brand awareness; the existence of or adherence to development 
schedules; the existence or absence of adverse publicity; availability, 
locations and terms of sites for Quikava outlets; changes in business strategy
or development plans; quality of management; availability, terms and 
deployment of capital; business abilities and judgement of personnel; 
availability of qualified personnel; labor and employee benefit costs; 
changes in or the failure to comply with government regulations; construction
costs and other factors.


MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF 
OPERATIONS 
CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES

RESULTS OF OPERATIONS

The discussion and analysis that follows relates solely to continuing 
operations of the Company.

In January 1997, the Company acquired substantially all of the assets and
assumed substantially all of the liabilities of Ireland Coffee and Tea Company
("Ireland"). The business of Ireland consists of roasting and distributing 
coffees to hotels, restaurants and institutions on the East Coast.

Net sales from beverage products increased $41,254,000 or 13% for the year 
ended July 31, 1997, compared to the prior year.  The increase was primarily 
due to a 15% increase in coffee pounds sold. Operating profits from beverage
products were $23,498,000, an increase of 41% for the year ended July 31, 
1997 compared to the prior year.  The increase resulted primarily from 
increased gross margins and the operations of Ireland from date of acquisition, 
partially offset by increased selling, general and administrative expenses.  
Increased gross margins were primarily due to increased coffee pounds sold and 
a decrease in the average cost of green coffee.  During the year ended July 31, 
1997 prices for green coffee ranged from a high of $3.15 to a low of $1.03
per pound.  Selling, general and administrative  expenses increased primarily 
due to increased advertising, brokerage and data processing costs 
and salaries.  Certain of the Company's selling expenses vary with the number 
of pounds sold, therefore selling expense has increased in 1997 compared to 
1996.

Net sales of Quikava company operated shops increased to $3,737,000 for the
year ended July 31, 1997 from $1,922,000 in the prior year.  Quikava's future
lies in its ability to franchise the concept, thereby generating royalty income
on franchise sales ($2,437,000 in 1997 versus $1,747,000 in 1996) plus initial
franchise fees to cover expenses for headquarters.  Company operated shops have
opened in new markets to generate potential franchisee interest and gain 
exposure to the concept.  Operating losses increased to $1,998,000 for the year
ended July 31, 1997 compared to $1,649,000 in the prior year.  The increase in
operating losses consists primarily of increased headquarters' expenses
(primarily payroll and related expenses for franchising infrastructure and 
pre-opening costs) and increased shop level losses (primarily due to the number
of shops open less than 12 months), partially offset by increased royalty 
income on increased franchisee sales.  The first year shops opening in new 
markets with lack of brand recognition resulted in slower sales growth and
greater shop level losses than established comparable shops.

Income from continuing operations was $7,914,000 or $.74 per share for the year
ended July 31, 1997, compared to $4,631,000 or $.43 per share for the prior 
year.  The difference was primarily due to increased operating profits from
beverage products and to a lesser extent increased interest income (resulting
from increased invested funds in the early part of fiscal 1997) and reduced 
interest expense (resulting from lower amounts of debt outstanding), partially 
offset by increased income taxes and increased operating losses from Quikava. 
Increased income taxes are primarily attributable to increased income before 
income taxes, partially offset by realization of prior year capital loss not 
previously recorded.  Net income for 1997 is the same as the results from 
continuing operations. Net income for 1996 is net of a loss from discontinued 
operations of $6,167,000 or $.57 per share (see Note 4 of Notes to Consoli-
dated Financial Statements).

Net sales from beverage products decreased $6,046,000 or 1.9% for the year 
ended July 31, 1996, compared to the prior year.  The decrease in net sales 
was due to a decrease in the average selling price of coffee, partially offset 
by a 16% increase in coffee pounds sold. Operating profits from beverage 
products were $16,708,000, a decrease of 12% for the year ended July 31, 1996,
compared to $19,075,000 for the prior year.  The decrease resulted primarily 
from decreased gross margins.  Decreased gross margins were due to a decrease
in the average selling price of coffee greater than the decrease in the 
average cost of green coffee, partially offset by inceased coffee pounds sold.  
During the year ended July 31, 1996, prices for green  coffee ranged from a 
high of $1.54 per pound to a low of $.91 per pound.  Selling, general and 
administrative expenses were slightly lower than the prior year, with decreases 
in advertising, coupon, payroll and payroll related expenses partially offset 
by increased brokerage and delivery costs.

Net sales of Quikava increased to $1,922,000 for the year ended July 31, 1996
from $882,000 in the prior year.  Operating losses increased to $1,649,000 for
the year ended July 31, 1996 compared to $870,000 in the prior year.  The
increase in operating losses was substantially attributable to increased 
headquarters' expense (primarily payroll and related expenses) and store level
losses (primarily attributable to first year stores), partially offset by 
increased royalty income on increased franchisee sales ($1,747,000 in 1996
versus $1,232,000 in 1995).

Income from continuing operations was $4,631,000 or $.43 per share for the year
ended July 31, 1996, compared to $6,738,000 or $.63 per share for the prior 
year. The difference was primarily due to decreased operating profits from
beverage products and increased operating losses from Quikava, partially offset 
by decreased income taxes (primarily due to decreased income before income 
taxes).

General inflation has been relatively low for the last several years; however, 
green coffee prices have changed significantly during fiscal 1997, 1996 and 
1995.  While the Company manages its inventory to have rapid turnover, the 
changes in green coffee prices have required the Company to carry higher 
inventories (dollars) than it might otherwise have done in a more stable 
green coffee market and impacted the Company's gross profit percentage.



LIQUIDITY AND CAPITAL RESOURCES

As of July 31, 1997, working capital was approximately $99,000,000 and the 
ratio of current assets to current liabilities was 4.5 to 1.

As of July 31, 1997, the Company had unused borrowing capacity of 
approximately $28 million under its credit facilities of $40 million with  
Fleet Bank  N.A. and The Chase Manhattan Bank (see Note 2 of Notes to Consoli-
dated Financial Statements).

The Company plans on expanding its Quikava franchised operations, which  
are currently operating in 9 locations.  The sales of Company operated and 
franchised units are not material to the Company's consolidated sales.  
Total Quikava store level operations are not currently profitable but are being
offset by franchise income and, in addition, Quikava headquarters' expenses of
approximately $1,400,000 on an annual basis are not being absorbed.

The Company believes that its cash flow from operations, its cash equivalents 
and its revolving credit and term loan agreements with its
Banks provide sufficient liquidity to meet its working capital, expansion and 
capital requirements.


GREEN COFFEE MARKET

Coffee is one of the leading commodities traded on futures exchanges. 
Supplies fluctuate with the weather and prices have been volatile.  
The supply and price is affected by multiple factors, such as weather, 
politics and economics in the coffee producing countries, many of which are 
lesser developed nations. While coffee trades primarily on the futures market, 
coffee of the quality level sought by the Company can trade on a negotiated 
basis at a substantial premium above commodity coffee pricing, depending upon 
the supply and demand at the time of purchase.  
				    
The International Coffee Organization, through the imposition of export quotas
agreed upon by consumer and producer member nations, has in the past attempted 
to maintain the commodity prices of green coffees.  In July 1989 the refusal of
certain countries to participate in the quota system resulted in the 
dissolution of the agreement and a drop in the prices of coffees.  In August 
1993, 21 coffee-producing countries formed a new cartel, the Association of 
Coffee Producing Countries ("ACPC") and announced plans to cut the supply
of coffee by 20% beginning October 1, 1993 in an attempt to raise world coffee
prices.  The effect of the ACPC on coffee prices is difficult to determine 
in light of the dramatic price increases resulting from the 1994 frosts in 
Brazil discussed below.  Nonetheless, the ACPC met in November 1994 and 
resolved to sustain green coffee bean prices.  In Janaury 1996, the ACPC 
agreed to extend its current limitations on the supply of green coffee upon 
their expiration in June 1996 through the 1996/1997 green coffee year.  
The Company is unable to predict whether the ACPC will be successful in 
achieving its goals. Based on published statistics the supplies of green 
coffees held by consumers (roasters and buyers) are currently, near 
historically low levels.  

Brazil, the world's largest coffee producer, experienced frosts in June
and July of 1994 which reportedly damaged approximately 40% of the green
coffee bean crop.  The announcement of the Brazilian frost damage caused a 
substantial increase in green coffee bean prices and other coffee-product 
prices worldwide.  The Company purchases a modest amount of its green coffee 
beans from Brazil.  In the third and fourth quarter of 1994 the 
Company experienced a significant increase in the price of green coffee beans 
which carried over into the first three quarters of 1995. The Company was not 
able to immediately pass through to customers all of the price increases in the
third and fourth quarters of 1994 and the first quarter of 1995 following the 
significant increase in green coffee bean prices that resulted from the 
Brazilian frosts.  Subsequent to such period through January 1997, the 
Company's green coffee purchases and commitments returned to pricing levels 
closer to those that existed prior to the June and July 1994 Brazilian frosts. 
In February 1997, green coffee bean prices began to rise significantly reaching
a high of $3.18 per pound in May 1997.  This bull market was somewhat unique 
in that the fundamental cause was very tight stocks of arabica coffee in 
consuming countries.  Historically, bull markets have been the direct result of
weather developments in Brazil, specifically cold weather and drought that 
damages the following crop.  Subsequent to May 1997, the green coffee market 
has been in the $1.60 to $2.10 range.

The Company is unable to predict weather events in particular countries that 
may adversely affect coffee supplies and price.  Except for late 1994 and early
1995, the Company generally has been able to pass green coffee price increases
through to its customers, thereby maintaining its gross margins. The 
Company cannot predict whether it will be able to pass inventory price 
increases through to its customers in full in the future.

A significant portion of the Company's green coffee supply is contracted for 
future delivery, generally between three and twelve months forward (with 
declining precentages of the supply being subject to future contracts in the 
latter portions of each year), to ensure both an adequate supply and reduced 
risk of short-term price fluctuations. Green coffee is a large market with 
well-established brokers, importers and warehousemen though which the Company 
manages its requirements.  In addition to forward purchases, the Company keeps
physical inventory in each of its production facilities and third-party 
warehouses representing anywhere from four to ten weeks of supply requirements.
All coffee purchase transactions are in U.S. dollars, the industry's standard 
currency.  The Company believes that it is not dependent upon any one 
importer or broker for its supply of green coffee beans from any particular 
country.

Retail Customers are very price-sensitive about the purchase of coffee in 
supermakets. When retail prices increase dramatically, takeaway declines and 
consumers switch to less expensive brands and high yield roasts. Likewise, Food
Service Customers in times of price increase tend to stretch the use of 
inventory.


SEGMENT INFORMATION
CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES

						    Year Ended July 31   
				   1997             1996          1995   
						  (Amounts in Thousands)
								   
Net sales - beverage products    $360,467       $ 319,213       $325,259    
Net sales - Quikava                 3,737           1,922            882
				 $364,204       $ 321,135       $326,141
Rental revenues                  $  2,091       $   2,156       $  2,061 
	
Operating profit\(loss):
    Beverage products            $ 23,498       $  16,708        $19,075
    Quikava                        (1,998)         (1,649)          (870)
    Real estate                       140             671            490
    Eliminations                     (393)           (625)          (423)
				 $ 21,247        $ 15,105        $18,272 

Identifiable assets:
    Beverage products            $186,304        $152,168       $163,595
    Quikava                         4,835           4,720          1,971
    Real estate                     9,356           9,493          9,564  
    Corporate                      16,835          33,054         31,875 
				 $217,330        $199,435       $207,005
Depreciation and amortization:
    Beverage products             $ 6,843         $ 6,006        $ 5,515
    Quikava                           366             197             81
    Corporate                         177             177            203   
				  $ 7,386         $ 6,380        $ 5,799
Capital expenditures:
    Beverage products             $ 5,154         $ 4,831        $ 6,224
    Quikava                           953           2,566            309
    Corporate                          17              14             14
				  $ 6,124         $ 7,411        $ 6,547

				      

The beverage products segment is engaged in the (a) roasting, packing and 
marketing of regular, instant, decaffeinated and specialty coffees and (b) 
packing and marketing of regular and decaffeinated tea for sale to Retail, 
Foodservice and Private Label customers.  Additionally, other related food 
products are marketed and sold to Foodservice customers. Quikava operations 
feature a full assortment of specialty coffee beverages and a varitey of 
freshly prepared foods and baked goods specifically suited for in-car 
consumption. See Note 4 of Notes to Consolidated Financial Statements for 
discontinued cafe operations. Operations of real estate represent rental 
and other income principally from the Company's original restaurant facilities.

All of the Company's operations are located in the United States. Export sales 
are not significant.

Identifiable assets under the caption "Corporate" include (1) cash and cash 
equivalents, investments in marketable securities and short-term investments 
of $3,781,000 (1997), $15,180,000 (1996) and  $14,425,000 (1995) and (2) net 
assets of discontinued operations of $895,000 (1997), $941,000 (1996) and 
$3,814,000 (1995).




CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES
COMMON SHARE PRICES

The Company's Common Stock is traded on the New York Stock Exchange under the 
symbol CHF.  The Company has approximately 14,000 shareholders of record as of 
October 8, 1997.

					1997                      1996    

				    High     Low               High    Low

    1st Quarter                     5 3/8    4 5/8             6 3/4   5 7/8
    2nd Quarter                     5 3/8    4 5/8             6 1/8   5 1/8   
    3rd Quarter                     6 1/8    5 1/8             5 1/2   4 3/4  
    4th Quarter                     7 7/16   5 5/8             5 1/4   4 5/8



Pursuant to certain provisions of a revolving credit and term loan agreement, 
the Company may not declare or pay any dividend (except for stock dividends).




Item 14(d)
CHOCK FULL O' NUTS CORPORATION AND SUBSIDIARIES
SCHEDULE II- VALUATION AND QUALIFYING ACCOUNTS

  Column A                 Column B    Column C           Column D     Column E
				       Additions
			   Balance at  Charged to                       Balance
			   Beginning   Costs and          Deductions    at End
Description                of Period   Expenses   Other      (1)      of Period

Year ended July 31, 1997:
 Allowance for doubtful
  accounts and discounts  $1,133,000  $2,440,846         $2,151,846  $1,422,000

Year ended July 31, 1996:
 Allowance for doubtful
  accounts and discounts  $1,251,000  $2,315,902         $2,433,902  $1,133,000

Year ended July 31, 1995:
 Allowance for doubtful
  accounts and discounts  $  928,000  $2,597,705         $2,274,705  $1,251,000





(1)     Discounts taken by customers and uncollectible accounts written-off, 
	net of recoveries.



EXHIBIT 11 - STATMENT RE: COMPUTATION OF PER SHARE EARNINGS

					  YEAR ENDED JULY 31, 
				1997             1996             1995  
					(AMOUNTS IN THOUSANDS,
					EXCEPT PER SHARE DATA)
PRIMARY    
  AVERAGE SHARES OUTSTANDING  10,736           10,736             10,736
  INCOME FROM CONTINUING    
  OPERATIONS                  $7,914           $4,631             $6,738 
  NET INCOME/(LOSS)           $7,914          $(1,536)            $4,863    
  PER SHARE AMOUNTS:    
  INCOME FROM CONTINUING     
  OPERATIONS                    $.74             $.43               $.63    
  NET INCOME/(LOSS)             $.74            $(.14)              $.45
FULLY DILUTED         
  AVERAGE SHARES OUTSTANDING  10,736           10,736             10,736    
  ASSUMED CONVERSION OF     
  CONVERTIBLE DEBENTURES      11,821           11,821             11,821  
     TOTAL                    22,557           22,557             22,557    
  INCOME FROM CONTINUING     
   OPERATIONS                 $7,914           $4,631             $6,738    
  ADD CONVERTIBLE DEBENTURES     
  INTEREST AND AMORTIZATION    
  OF DEFERRED CHARGES, NET     
  OF INCOME TAXES              4,392            4,386              4,670 
     TOTAL                   $12,306           $9,017            $11,408    
  NET INCOME/(LOSS)           $7,914          $(1,536)            $4,863    
  ADD CONVERTIBLE DEBENTURES    
  INTEREST AND AMORTIZATION    
  OF DEFERRED CHARGES, NET    
  OF INCOME TAXES              4,392            4,452              4,670  
     TOTAL                   $12,306           $2,916             $9,533    
  PER SHARE AMOUNTS:    
  INCOME FROM CONTINUING     
  OPERATIONS                    $.55             $.40               $.51    
  NET INCOME                    $.55             $.13               $.42

EXHIBIT 21 - SUBSIDIARIES OF THE REGISTRANT

As of October 13, 1997, the Company had directly and indirectly the following 
active subsidiaries, all of which are included in the Company's consolidated 
financial statements furnished herewith:

    Subsidiaries of
Chock full o'Nuts Corporation

Chock Realty Corporation     California         100%
Cain's Coffee Co.            Delaware           100%
Cain's Holding Company       Delaware           100%
Quikava, Inc.                Massachusetts      100%

Exhibit 27 - FINANCIAL DATA SCHEDULE                                        

Appendix A to item 601 (c) of Regulation S-K
(Article 5 of Regulation S-X
Chock full o'Nuts Corporation and Subsidiaries)

Item Number     Item Description                              Amount

5-02 (1)        Cash and cash items                        $ 4,585,633
5-02 (2)        Marketable securities                            -0-
5-02 (3)(a)(1)  Notes and accounts receivable - trade       38,976,412
5-02 (4)        Allowances for doubtful accounts             1,422,000
5-02 (6)        Inventory                                   82,951,688
5-02 (9)        Total current assets                       127,728,954
5-02 (13)       Property, plant and equipment               98,609,466
5-02 (14)       Accumulated depreciation                    49,933,489
5-02 (18)       Total assets                               217,509,966
5-02 (21)       Total current liabilities                   28,642,798
5-02 (22)       Bonds, mortgages and similar debt          106,065,753
5-02 (28)       Preferred stock - mandatory redemption           -0-
5-02 (29)       Preferred stock - no mandatory redemption        -0-
5-02 (30)       Common stock                                 2,802,767
5-02 (31)       Other stockholders' equity                  69,078,570
5-02 (32)       Total liabilities and stockholders' equity 217,509,966
5-03 (b) 1 (a)  Net sales of tangible products             364,203,601
5-03 (b) 1      Total revenues                             366,294,908
5-03 (b) 2 (a)  Cost of tangible goods sold                257,078,504
5-03 (b) 2      Total costs and expenses applicable to  
		sales and revenues                         259,029,641
5-03 (b) 3      Other costs and expenses                         -0-
5-03 (b) 5      Provision for doubtful accounts and notes    2,440,846
5-03 (b) (8)    Interest and amortization of debt            8,599,963
5-03 (b) (10)   Income before taxes and other items         12,212,392
5-03 (b) (11)   Income tax expense                           4,298,000
5-03 (b) (14)   Income/loss continuing operations            7,914,392
5-03 (b) (15)   Discontinued operations                          -0-
5-03 (b) (17)   Extraordinary items                              -0-
5-03 (b) (18)   Cumulative effect - changes in
		accounting principles                            -0-
5-03 (b) (19)   Net income or loss                           7,914,392
5-03 (b) (20)   Earnings per share - primary                       .74
5-03 (b) (20)   Earnings per share - fully diluted                 .55